Bank deposits in Tanzania increased by 17.7 percent to 31.14tn/- during H1, 2023 attributed to enhanced use of agent banking services, mobile banking platforms, expansion of bank branch network, and recovery of economic activities according the Bank of Tanzania (BoT) Consolidated Zonal Economic Performance Report released recently.
Available data shows that Dar es Salaam zone accounted for the largest share at 61.7 percent after bank deposits hit 19.2trn/- in H1, 2023 as compared to 16.1trn/- recorded during the same period in 2022.
The Northern and Central zones settled in the second and third places respectively accounting for 26.2 and 21.6% of the bank deposits registered during H1, 2023.
Bank loans to various economic activities amounted to 25.79trn/- from 21.15trn/- in 2021/as a result of improved business environment coupled with lagged effects of accommodative monetary policy measures to stimulate economic growth, and measures to reduce lending interest rates.
“Personal and trade loans accounted for 43.3 percent and 11.2 percent of outstanding loans, respectively,” the Central Bank report shows.
Agent banking operations
According to the BoT report, agent banking services improved as reflected by an increase in the number of bank agents, volume, and value of transactions.
The volume and value of cash deposits increased by 26.6 percent and 46.7 percent to 81,646,098 transactions and 66.742trn/- in 2022/23, respectively.
“Improvement was also observed in volume and value of cash withdrawals that grew by 46.7 percent and 32.4 percent, in that order,”
This performance was attributed to increased public awareness, integration of banking systems and mobile networks, and moderation of agent banking eligibility criteria by the Bank of Tanzania,” the report added.
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